Sales Tax Transactions

Journalize the entries to record the following selected transactions.

a. Sold $852,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $502,680.

If an amount box does not require an entry, leave it blank.

	Accounts Receivable
	Sales
	Sales Tax Payable
	Cost of Goods Sold
	Inventory

b. Paid $45,520 to the state sales tax department for taxes collected.

If an amount box does not require an entry, leave it blank.

	Sales Tax Payable
	Cash